{"id":5239,"date":"2025-07-21T06:56:40","date_gmt":"2025-07-21T06:56:40","guid":{"rendered":"https:\/\/bitunikey.com\/news\/bitcoin-faces-risk-of-pullback-amid-rising-exchange-reserves-analysis\/"},"modified":"2025-07-21T06:56:42","modified_gmt":"2025-07-21T06:56:42","slug":"bitcoin-faces-risk-of-pullback-amid-rising-exchange-reserves-analysis","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/bitcoin-faces-risk-of-pullback-amid-rising-exchange-reserves-analysis\/","title":{"rendered":"Bitcoin faces risk of pullback amid rising exchange reserves: Analysis"},"content":{"rendered":"
\n

Bitcoin may be entering a short-term correction phase, as on-chain and market sentiment indicators flash caution despite an overall bullish trend.<\/p>\n

According to a July 20 analysis<\/a> by CryptoQuant contributor ShayanMarkets, Bitcoin (BTC) reserves on centralized exchanges have risen to their highest level since June 25. This uptick in exchange balances reflects ongoing profit-taking by investors, increasing the supply of BTC that could potentially be sold.\u00a0<\/p>\n

Reserve increases of this kind have historically preceded market declines or times of price consolidation, particularly when they occur in tandem with waning buy-side momentum. Darkfost, a fellow CryptoQuant contributor, pointed out a significant increase<\/a> in BTC whale inflows to exchanges, which further supports the cautious outlook.\u00a0<\/p>\n

The inflows, which are averaged monthly to smooth out short-term volatility, increased by almost $17 billion, from $28 billion to $45 billion between July 14 and 18. Similar trends were observed during past local peaks, when monthly whale inflows exceeded $75 billion before leading to more significant corrections.\u00a0<\/p>\n

<\/p>\n

The overall upward pressure from whales trying to secure profits remains a risk factor, even though daily inflow volumes have since decreased. Still, there is a strong sense of optimism. <\/p>\n

CryptoQuant\u2019s Bitcoin Bull Score Index is currently at 80, indicating a very bullish phase, according<\/a> to analyst Arab Chain. But there\u2019s also a chance of overheating with such high optimism. In the past, excessive greed has led to higher volatility as traders reduce positions and take profits, particularly after an all-time high.\u00a0<\/p>\n

At press time, Bitcoin was trading at $118,307, up 0.4% in the past 24 hours after retreating from a record high of $122,838 set on July 22. The asset is down 2.5% over the past week but remains up 14% over the last 30 days.<\/p>\n

On the technical side, the daily chart shows short-term fatigue. Bitcoin is trading near the middle of the Bollinger Bands, with the lower band at $105,383 and the upper band at $123,522. The price\u2019s consolidation at $114,453, just above the 20-day simple moving average, suggests a potential support test.<\/p>\n

<\/source><\/p>\n<\/picture>
Bitcoin price analysis. Credit: crypto.news<\/figcaption><\/figure>\n

Volume has declined relative to recent highs, which is consistent with the ongoing profit-taking narrative. At 68.11, the relative strength index is just below the overbought level, indicating that momentum is cooling off even though it\u2019s still positive.<\/p>\n

If Bitcoin closes below the 20-day SMA and the mid-Bollinger band, it might decline further toward the lower band around $105K. On the upside, a fresh breakout above $122,000 would probably invalidate the bearish theory and confirm that the upward trend is still in place.<\/p>\n

<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin may be entering a short-term correction phase, as on-chain and market sentiment indicators flash caution despite an overall bullish trend. According to a July 20 analysis by CryptoQuant contributor…<\/p>\n","protected":false},"author":1,"featured_media":3976,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=5239"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5239\/revisions"}],"predecessor-version":[{"id":5240,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5239\/revisions\/5240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/3976"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=5239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=5239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=5239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}